To Cut Import, Govt To Boost Production Of APIs

NEW DELHI, 20 FEB 2019: In a move to reduce dependence on China for import of raw material for medicines, the department of pharmaceuticals has charted out a plan to boost local manufacturing of active pharmaceutical ingredients (API) used in formulations.

The strategy paper includes proposals for development of clusters, special incentives and API parks in Assam and Andhra Pradesh to promote indigenous manufacturing, minister of state for chemicals and fertilisers Mansukh L Mandaviya said. The plan was presented by Mandaviya on Monday in an ongoing two-day international conference — ‘Indian Pharma 2019’ — in Bengaluru.

At present, India gets around 70% of its API supplies from China. For some raw materials for specific formulations, the dependence on import even goes up to 80-90%, putting India’s public health at major risk of drug shortage in case diplomatic relations come under stress.

While the issue has been a concern with the government for many years, local production of API has continuously declined over years with the industry blaming trivial margins on raw material. The fact that raw material sourced from China is also priced very low as compared to that made in India has also deterred companies from using indigenous production.

According to industry executives, the landed price of API from China is 15-20% cheaper than that produced here, making it more viable for companies to import.

The government also plans to strengthen regulatory mechanism and may impose a higher fee structure to stop small time operators of API from supplying to India. This is also aimed at keeping in check the quality of drug raw material supplied to India. ET Healthworld